In an efficient market:
A) security prices are seldom far above or below their justified level.
B) share prices react quickly to new information.
C) investors will not make superior returns consistently.
D) All of the given answers are correct.

Question

Quizplus · Accepted Answer

An efficient market is one where securities are fairly priced, share prices react quickly to new information, and investors cannot consistently make superior returns. Therefore, all of the given statements are correct.

In an Efficient Market